From Silicon Republic: 2024-07-10 04:25:19

Microsoft has decided to give up its observer seat on the board of OpenAI due to significant progress seen in the AI start-up, feeling the role is no longer necessary after key leadership changes. The decision comes as Microsoft faces antitrust scrutiny in the US over its ties to OpenAI.

The non-voting observer seat was set up when Microsoft helped bring Sam Altman back as CEO, but after his unexpected firing and subsequent reinstatement, the software giant believes its limited role as an observer is no longer needed.

Microsoft CEO Satya Nadella praised the new board as a step towards more effective governance, emphasizing the importance of leadership in ensuring OpenAI’s success. The decision to step down from the observer seat comes amid ongoing antitrust investigations involving Microsoft, OpenAI, and Nvidia.

Following a recent partnership with Apple, OpenAI was planning to give an observer seat to Apple executive Phil Schiller, but now, with Microsoft’s departure, sources indicate OpenAI no longer plans to have any observers on its board. The move marks a shift in the company’s governance structure.



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